Pensions Building Infrastructure Allocations

While cities struggle with their balance sheets, private equity and infrastructure funds across the U.S. are raising increasing amounts of cash from state pension funds to help finance the infrastructure projects municipalities sorely need.

Even as Congress moves to approve new spending on everything from toll roads, ports and bridges, pension funds including the California Public Employees’ Retirement System, the Washington State Investment Board, and the Oregon Investment Council are investing millions with private firms that are already developing projects in conjunction with local governments.

In San Diego, infrastructure investment firm Stonepeak Infrastructure Partners, which counts both Washington and Oregon among its investors, is developing what will be one of the largest water desalination plants in the Western Hemisphere. The project is being financed by Stonepeak and bond offerings totaling $734 million.